The Market's Best-Kept Secret | Travis Prentice on Momentum's Surprising Edge скачать в хорошем качестве

The Market's Best-Kept Secret | Travis Prentice on Momentum's Surprising Edge

In this episode of Excess Returns, Justin and Jack welcome Travis Prentice from Informed Momentum Company to discuss the ins and outs of momentum investing. Travis brings nearly three decades of momentum investing experience and shares valuable insights about momentum strategies, misconceptions, implementation challenges, and how momentum can be effectively combined with other factors. This conversation offers both beginning and experienced investors a comprehensive look at this powerful investment strategy. Topics Covered: What momentum investing is and how it differs from growth investing The mechanics of cross-sectional momentum and relative strength Common misconceptions about momentum strategies How fundamental data can enhance momentum strategies The significance of continuous vs. dynamic momentum Portfolio construction, sector concentration, and rebalancing approaches Momentum performance across different market caps and geographies The risk profile of momentum vs. value strategies Momentum crashes - what they are and how to mitigate them Tax efficiency of momentum strategies The impact of passive investing on momentum strategies Optimal factor combinations for diversified portfolios Timestamps: 0:00 - Introduction 1:01 - Discussion of why Nvidia might not always be in a momentum portfolio 3:53 - Explanation of cross-sectional momentum and relative strength 5:28 - Distinguishing momentum from growth investing 7:24 - Example of momentum's adaptability across market sectors 8:49 - The complexity of implementing momentum strategies 10:56 - Timeframes over which momentum works effectively 12:30 - Why momentum works: behavioral vs. risk-based explanations 14:01 - Addressing transaction costs in momentum strategies 16:45 - Tax efficiency of momentum strategies 19:11 - Portfolio management considerations 22:12 - Fundamental momentum vs. price-only momentum 24:27 - Discussion of "continuous" vs. "dynamic" momentum 28:36 - Momentum across different markets and geographies 31:34 - Balancing strategy evolution with long-term principles 34:48 - Rebalancing frequency vs. turnover 36:42 - Portfolio size and diversification approaches 38:52 - Managing sector concentration 39:09 - Understanding momentum crashes 41:18 - Risk comparison: momentum vs. value strategies 44:06 - Benefits of combining momentum with other factors 45:25 - Evolution as a momentum investor 46:40 - Impact of passive investing on market structure 48:37 - Closing questions on contrarian beliefs and investing lessons